Page 17 - F6 Slides (CGT,TT,ET AND PT)
P. 17
Disposal of small business assets exclusion
• Where a natural person makes a capital gain on the disposal of the active
business assets of his small business he can disregard up to R1,8 million of
the gain (par 57).
• A small business includes interests held through a company or close
corporation. A ‘small business’ is defined as a business where the market
value of all the assets does not exceed R10 million as at the date of
disposal of the assets or interests (par 57(1)).
• Where a person owns more than one business, the exclusion will only
apply where all the assets of the combined businesses do no exceed R10
million.
• The assets include all assets of the businesses (active business assets and
other assets).
